Cryptocurrencies are undergoing the regulatory knives lately. The announcement made by Coinbase regarding the involvement of SEC and FINRA approval to list securities came as delightful news to the respite of many exchanges that offer a trading platform for the cryptocurrencies. The market’s excitement proved short-lived after Coinbase announced that the SEC and FINRA did not approve the three critical acquisitions of Keystone Capital Corp., Venovate Marketplace Inc., and Digital Wealth LLC.
Clarification on SEC and FINRA Involvement in Coinbase Acquisitions
As per the earlier statement made by the Coinbase exchange, SEC and FINRA approval would allow Coinbase to list the cryptocurrencies as securities. The news became viral on 16th of July 2018. In a July 17 interview with a Bloomberg correspondent, a Coinbase representative clarified that the report exaggerated the situation. He explained that the Coinbase team and a key SEC representative only had an informal discussion. The representative also stated that the three key acquisitions they plan to make require minimal involvement from the SEC and FINRA.
In an email dated July 17, 2018, Coinbase spokesperson Rachael Horwitz clearly stated that neither the SEC nor any SEC member was involved in the purchase of Keystone. She further explained that SEC approval will not affect any acquisition now or in the future. The proposal underwent an informal discussion with SEC members, not a formal SEC approval as some have suggested.
Coinbase is highly focusing on expanding the coins that can be available for trading over the platform. They have been exploring the new coins and have come up with a list of five coins they might enlist. Coinbase is trying to list some securities on their platform, and that is why they took the discussion of Keystone acquisition to SEC members.
Coinbase is vocal about the fact that they intend to be a registered as a regulated broker whose marketplace deals in both securities and cryptocurrencies.
